ARM vs. SMCI: A Head-to-Head Stock Comparison

Updated on July 7, 2025

Here’s a clear look at ARM and SMCI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

ARM’s market capitalization of 163.93 billion USD is substantially larger than SMCI’s 28.98 billion USD, indicating a significant difference in their market valuations.

ARM’s beta of 4.10 points to significantly higher volatility compared to SMCI (beta: 1.40), suggesting ARM has greater potential for both gains and losses relative to market movements.

ARM trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, SMCI is a standard domestic listing.

Symbol	ARM	SMCI
Company Name	Arm Holdings plc American Depositary Shares	Super Micro Computer, Inc.
Country	GB	US
Sector	Technology	Technology
Industry	Semiconductors	Computer Hardware
CEO	Rene Anthony Andrada Haas	Charles Liang
Price	155.09 USD	48.56 USD
Market Cap	163.93 billion USD	28.98 billion USD
Beta	4.10	1.40
Exchange	NASDAQ	NASDAQ
IPO Date	September 14, 2023	March 29, 2007
ADR	Yes	No

Historical Performance

This chart compares the performance of ARM and SMCI by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ARM vs. SMCI: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ARM

12.71%

Semiconductors Industry

Max: 41.84%
Q3: 15.81%
Median: 6.31%
Q1: -5.54%
Min: -30.12%

ARM’s Return on Equity of 12.71% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.

SMCI

19.21%

Computer Hardware Industry

Max: 123.03%
Q3: 15.78%
Median: -13.44%
Q1: -119.16%
Min: -227.95%

In the upper quartile for the Computer Hardware industry, SMCI’s Return on Equity of 19.21% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ARM vs. SMCI: A comparison of their ROE against their respective Semiconductors and Computer Hardware industry benchmarks.

Return on Invested Capital

ARM

11.37%

Semiconductors Industry

Max: 30.91%
Q3: 11.34%
Median: 4.08%
Q1: -2.17%
Min: -19.59%

In the upper quartile for the Semiconductors industry, ARM’s Return on Invested Capital of 11.37% signifies a highly effective use of its capital to generate profits when compared to its peers.

SMCI

12.50%

Computer Hardware Industry

Max: 30.37%
Q3: 20.44%
Median: 7.03%
Q1: -12.47%
Min: -31.70%

SMCI’s Return on Invested Capital of 12.50% is in line with the norm for the Computer Hardware industry, reflecting a standard level of efficiency in generating profits from its capital base.

ARM vs. SMCI: A comparison of their ROIC against their respective Semiconductors and Computer Hardware industry benchmarks.

Net Profit Margin

ARM

19.77%

Semiconductors Industry

Max: 51.69%
Q3: 19.67%
Median: 8.56%
Q1: -5.44%
Min: -38.60%

A Net Profit Margin of 19.77% places ARM in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.

SMCI

5.34%

Computer Hardware Industry

Max: 40.72%
Q3: 10.87%
Median: 4.33%
Q1: -378.64%
Min: -753.20%

SMCI’s Net Profit Margin of 5.34% is aligned with the median group of its peers in the Computer Hardware industry. This indicates its ability to convert revenue into profit is typical for the sector.

ARM vs. SMCI: A comparison of their Net Profit Margin against their respective Semiconductors and Computer Hardware industry benchmarks.

Operating Profit Margin

ARM

20.74%

Semiconductors Industry

Max: 58.03%
Q3: 22.12%
Median: 8.40%
Q1: -3.73%
Min: -36.14%

ARM’s Operating Profit Margin of 20.74% is around the midpoint for the Semiconductors industry, indicating that its efficiency in managing core business operations is typical for the sector.

SMCI

6.09%

Computer Hardware Industry

Max: 42.27%
Q3: 13.53%
Median: 4.56%
Q1: -295.01%
Min: -592.84%

SMCI’s Operating Profit Margin of 6.09% is around the midpoint for the Computer Hardware industry, indicating that its efficiency in managing core business operations is typical for the sector.

ARM vs. SMCI: A comparison of their Operating Margin against their respective Semiconductors and Computer Hardware industry benchmarks.

Profitability at a Glance

Symbol	ARM	SMCI
Return on Equity (TTM)	12.71%	19.21%
Return on Assets (TTM)	8.87%	10.72%
Return on Invested Capital (TTM)	11.37%	12.50%
Net Profit Margin (TTM)	19.77%	5.34%
Operating Profit Margin (TTM)	20.74%	6.09%
Gross Profit Margin (TTM)	95.83%	11.27%

Financial Strength

Current Ratio

ARM

5.20

Semiconductors Industry

Max: 9.10
Q3: 5.23
Median: 3.09
Q1: 2.49
Min: 1.02

ARM’s Current Ratio of 5.20 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.

SMCI

6.66

Computer Hardware Industry

Max: 20.73
Q3: 11.54
Median: 2.69
Q1: 1.40
Min: 0.73

SMCI’s Current Ratio of 6.66 aligns with the median group of the Computer Hardware industry, indicating that its short-term liquidity is in line with its sector peers.

ARM vs. SMCI: A comparison of their Current Ratio against their respective Semiconductors and Computer Hardware industry benchmarks.

Debt-to-Equity Ratio

ARM

0.05

Semiconductors Industry

Max: 0.97
Q3: 0.46
Median: 0.21
Q1: 0.05
Min: 0.00

ARM’s Debt-to-Equity Ratio of 0.05 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

SMCI

0.38

Computer Hardware Industry

Max: 1.36
Q3: 0.67
Median: 0.04
Q1: 0.03
Min: 0.00

SMCI’s Debt-to-Equity Ratio of 0.38 is typical for the Computer Hardware industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ARM vs. SMCI: A comparison of their D/E Ratio against their respective Semiconductors and Computer Hardware industry benchmarks.

Interest Coverage Ratio

ARM

Semiconductors Industry

Max: 36.25
Q3: 29.12
Median: 7.01
Q1: -1.22
Min: -18.18

Interest Coverage Ratio data for ARM is currently unavailable.

SMCI

32.50

Computer Hardware Industry

Max: 32.50
Q3: 21.85
Median: 4.98
Q1: -7.71
Min: -34.24

SMCI’s Interest Coverage Ratio of 32.50 is in the upper quartile for the Computer Hardware industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ARM vs. SMCI: A comparison of their Interest Coverage against their respective Semiconductors and Computer Hardware industry benchmarks.

Financial Strength at a Glance

Symbol	ARM	SMCI
Current Ratio (TTM)	5.20	6.66
Quick Ratio (TTM)	5.20	3.95
Debt-to-Equity Ratio (TTM)	0.05	0.38
Debt-to-Asset Ratio (TTM)	0.04	0.23
Net Debt-to-EBITDA Ratio (TTM)	-2.31	-0.06
Interest Coverage Ratio (TTM)	--	32.50

Growth

The following charts compare key year-over-year (YoY) growth metrics for ARM and SMCI. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ARM vs. SMCI: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ARM vs. SMCI: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ARM vs. SMCI: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ARM

0.00%

Semiconductors Industry

Max: 6.48%
Q3: 0.93%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

ARM currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

SMCI

0.00%

Computer Hardware Industry

Max: 9.24%
Q3: 1.58%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

SMCI currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ARM vs. SMCI: A comparison of their Dividend Yield against their respective Semiconductors and Computer Hardware industry benchmarks.

Dividend Payout Ratio

ARM

0.00%

Semiconductors Industry

Max: 204.29%
Q3: 31.85%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

ARM has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

SMCI

0.00%

Computer Hardware Industry

Max: 193.79%
Q3: 30.72%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

SMCI has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ARM vs. SMCI: A comparison of their Payout Ratio against their respective Semiconductors and Computer Hardware industry benchmarks.

Dividend at a Glance

Symbol	ARM	SMCI
Dividend Yield (TTM)	0.00%	0.00%
Dividend Payout Ratio (TTM)	0.00%	0.00%

Valuation

Price-to-Earnings Ratio

ARM

206.59

Semiconductors Industry

Max: 86.15
Q3: 47.38
Median: 27.87
Q1: 18.89
Min: 4.73

At 206.59, ARM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

SMCI

25.11

Computer Hardware Industry

Max: 24.60
Q3: 24.01
Median: 20.31
Q1: 18.24
Min: 13.38

At 25.11, SMCI’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Computer Hardware industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ARM vs. SMCI: A comparison of their P/E Ratio against their respective Semiconductors and Computer Hardware industry benchmarks.

Forward P/E to Growth Ratio

ARM

7.75

Semiconductors Industry

Max: 4.73
Q3: 2.80
Median: 1.11
Q1: 0.68
Min: 0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

SMCI

0.64

Computer Hardware Industry

Max: 9.77
Q3: 5.18
Median: 1.77
Q1: 1.17
Min: 0.02

The Forward PEG Ratio is often not a primary valuation metric in the Computer Hardware industry.

ARM vs. SMCI: A comparison of their Forward PEG Ratio against their respective Semiconductors and Computer Hardware industry benchmarks.

Price-to-Sales Ratio

ARM

40.91

Semiconductors Industry

Max: 21.96
Q3: 10.21
Median: 4.45
Q1: 2.32
Min: 0.48

With a P/S Ratio of 40.91, ARM trades at a valuation that eclipses even the highest in the Semiconductors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

SMCI

1.34

Computer Hardware Industry

Max: 57.61
Q3: 47.40
Median: 3.37
Q1: 1.56
Min: 0.43

In the lower quartile for the Computer Hardware industry, SMCI’s P/S Ratio of 1.34 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

ARM vs. SMCI: A comparison of their P/S Ratio against their respective Semiconductors and Computer Hardware industry benchmarks.

Price-to-Book Ratio

ARM

23.92

Semiconductors Industry

Max: 13.12
Q3: 6.49
Median: 3.31
Q1: 1.74
Min: 0.23

At 23.92, ARM’s P/B Ratio is at an extreme premium to the Semiconductors industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

SMCI

4.53

Computer Hardware Industry

Max: 21.21
Q3: 14.71
Median: 9.28
Q1: 3.74
Min: 0.43

SMCI’s P/B Ratio of 4.53 is within the conventional range for the Computer Hardware industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ARM vs. SMCI: A comparison of their P/B Ratio against their respective Semiconductors and Computer Hardware industry benchmarks.

Valuation at a Glance

Symbol	ARM	SMCI
Price-to-Earnings Ratio (P/E, TTM)	206.59	25.11
Forward PEG Ratio (TTM)	7.75	0.64
Price-to-Sales Ratio (P/S, TTM)	40.91	1.34
Price-to-Book Ratio (P/B, TTM)	23.92	4.53
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	1011.91	814.59
EV-to-EBITDA (TTM)	216.85	20.93
EV-to-Sales (TTM)	40.48	1.34